June 15th, 2023 | 08:00 CEST
Plug Power share unstoppable! BYD and Globex Mining are on the rise!
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"[...] We know exactly what we are doing and are implementing what we consider to be a proven technology in an industrially applicable and scalable way. [...]" Uwe Ahrens, Director, Altech Advanced Materials AG
Globex Mining: Commodity supercycle with risk buffer
Globex Mining is not known to every investor. But those who want to profit from the commodity supercycle should take a closer look at the share. Because with it, you get the commodity supercycle into your portfolio. The Canadians are involved in over 200 commodity projects and thus have a broadly diversified portfolio. This includes precious metals such as gold, silver, palladium and platinum and base metals such as copper, zinc, lead and nickel. Specialty metals and minerals such as iron, molybdenum, lithium and rare earth metals may also not be missing. Globex Mining sells or leases the projects to other companies and, in return, receives cash, shares and/or royalty payments on successful subsequent production.
Because of the numerous holdings, shareholders receive a regular news flow. For example, Globex recently announced the planned sale of the Dalhousie nickel-copper-cobalt project to Burin Gold Corp. The project is located in Quebec, Canada, and comprises 31 claims. A corresponding letter of intent was signed. According to the agreement, Globex will receive CAD 1.5 million and 4 million Burin shares. In addition, Burin commits to investing CAD 5 million in exploring Dalhousie over the next 4 years. Globex Mining will also receive a 3% gross metal royalty on all payable metals.
Since the end of May, Globex shares have gained a good 20% and are now trading back at EUR 0.55. If the newsflow remains positive, the year high at EUR 0.67 should at least be tested. The market capitalization of just over EUR 30 million seems to have room for improvement.
BYD: New batteries and model offensive in France
BYD's shares are also repeatedly rated too cheap, especially compared to rival Tesla. Operationally, the Chinese e-car specialist has been delivering one record after another for months. In recent months, the share price has finally been able to rise again. If it manages a sustained leap above EUR 30.50, the way up is clear, at least from a chart perspective. And operationally, things are going well anyway: the Company can even afford not to enter the US market for the time being. Instead, it is concentrating on its home market of China and on Europe. BYD is building a factory to produce sodium-ion batteries in the Chinese province of Jiangsu. These are considered an alternative to lithium batteries but currently have a short range due to their lower energy density. On the other hand, they score with a lower price. From BYD's point of view, sodium-ion batteries are suitable, for example, for very small vehicles that are used for short distances.
There are also new developments at BYD in terms of European expansion. This summer, the Company plans to launch a model offensive in France. Five e-cars, the Atto 3, Han, Tang, Dolphin and Seal, will soon be sold there. The expansion is accompanied by partnerships with four large French dealer groups. Together, a total of around 100 stores are to be opened nationwide by 2025 - 20 sales locations already in the current year.
BYD is also active in Europe in Germany, the United Kingdom, Spain, Portugal, Scandinavia, Belgium and other smaller countries. It will be exciting to see how many vehicles BYD will actually sell in Europe this year.
Plug Power: Unstoppable
The Plug Power share currently shows how quickly sentiment can turn. After initially more than halving in value this year, the stock has shot up by 50% within a month. Initially, the Company had published a sales forecast of USD 1.4 billion. Analysts had previously had USD 1.3 billion on the cards. The "US National Clean Hydrogen Strategy and Roadmap" is also causing euphoria among Plug Power shareholders. In this document, the US Department of Energy describes how the US is to achieve global leadership in the hydrogen market. Companies in the sector can therefore look forward to substantial subsidies and incentives.
Yesterday, Plug Power held its analyst day. And fittingly, there was also operational news. Plug's electrolysers will support the first hydrogen production plant for heavy-duty vehicles in Southern California. Plug Power's partner is Avina. The Company plans to produce and supply green hydrogen to fleet and filling station operators. Each of Plug's electrolysis units will enable Avina to produce up to 2 tonnes of green hydrogen per day (TPD) or 730 tonnes per year. Plug's 5 MW turnkey electrolyser is the largest outdoor solution available on the market with the smallest footprint.
"Plug and Avina's shared commitment to offsetting carbon emissions in hard-to-decarbonize sectors through the deployment of innovative green hydrogen solutions at scale makes this partnership a perfect fit," said Sanjay Shrestha, CSO and General Manager of Energy Business at Plug. "Driven by our leading electrolyser technology and unrivalled manufacturing capabilities, we look forward to working with such an agile partner as Avina to accelerate the transition to clean energy in Southern California, a forward-looking alternative energy market."
Euphoria is back at Plug Power. The share price appears overbought, but momentum is strong. At BYD, the share price is also finally pointing north again. The upward trend at Globex is still fresh, but the diversified business model within the exciting commodities market is promising.
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